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India Grows 7.8% as Investment Holds, Oil Risks Loom
India’s economy grew 7.8% in the first quarter of FY27.
Investment grew even faster, and government spending on capital projects also increased.
Banks lent more money, while deposits rose too.
Indian institutions bought shares even as foreign investors sold shares overall.
The report says this domestic buying is helping support the market.
It also warns that some smaller-company shares could become too expensive.
Companies increased sales, but their profits grew more slowly.
Higher oil prices could make inflation worse and put pressure on the rupee and company earnings.
Bajaj Broking Prive expects growth to continue, but says investors should watch company results and share prices carefully.
India’s real GDP grew 7.8% in Q1FY27, while gross fixed capital formation rose 11.9%.
Investment accounted for 34.3% of GDP, up from 31.4% a year earlier, and central government capital expenditure increased 24%.
Bank credit grew 18.13% annually for the fortnight ending September 15, 2026, while deposits rose 17.31%.
Domestic institutional investors bought ₹8.54 trillion in equities over the trailing twelve months, while foreign investors sold approximately ₹2.72 trillion net.
Bajaj Broking Prive identified higher crude oil prices as a risk to inflation, the rupee and corporate earnings.
- Who
- India’s economy, businesses, banks and investors; the outlook is from Bajaj Broking Prive.
- What
- The report describes 7.8% real GDP growth, strong investment and credit, and risks from oil prices and market valuations.
- Where
- India.
- When
- Q1FY27; bank-credit figures cover the fortnight ending September 15, 2026, and the outlook discusses H2FY27.
- Why
- Domestic demand, investment and infrastructure spending are supporting expansion, while higher crude oil prices could pressure inflation, the rupee and earnings.
Key facts
- Real GDP growth
- 7.8% in Q1FY27
- Gross fixed capital formation
- Rose 11.9%
- Investment share of GDP
- 34.3%, compared with 31.4% a year earlier
- Government capital expenditure
- Increased 24%
- Bank credit and deposits
- Credit grew 18.13% and deposits 17.31% annually for the fortnight ending September 15, 2026
- Equity flows
- Domestic institutional investors bought ₹8.54 trillion over the trailing twelve months; foreign investors recorded approximately ₹2.72 trillion in net sales
- Oil-risk assessment
- Bajaj Broking Prive considers crude at $90–$110 a barrel manageable; higher prices could strain inflation, the rupee and earnings
Sources
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